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Write a report on the following topic: Simulation based costing

Write a report on the following topic:

Simulation based costing

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SIMULATION BASED COSTING

Simulation Costing is a tool for planning costs and setting prices with which you manually enter the items in the form of a unit cost estimate . A base object cost estimate can be used as a building block in other cost estimates, and as a reference copy when planning other objects in the SAP system, such as when costing without a quantity structure.

The reference object in cost planning in connection with Reference and Simulation Costing is a base planning object . Each base planning object comprises master data and costing items with the relevant cost information. You manage cost planning for the base planning object using unit costing or multilevel unit costing .

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